PACE INDUSTRY UNION-MANAGEMENT PENSION FUND SUMMARY PLAN DESCRIPTION

Transcription

1 PACE INDUSTRY UNION-MANAGEMENT PENSION FUND SUMMARY PLAN DESCRIPTION April 2011

2 April 2011 To All Participants and Beneficiaries: The Board of Trustees of the PACE Industry Union-Management Pension Fund ( Fund ) is pleased to present you with this updated summary plan description ( SPD ) booklet that summarizes the rules and regulations of the PACE Industry Union- Management Pension Plan ( Plan or "Pension Plan ). Pension Plan benefits are funded by employer contributions (and earnings on those contributions) according to collective bargaining agreements with the USW International Union, AFL-CIO, its local unions, or other labor unions. The Plan can provide valuable security for you and your family both before and after retirement. We urge you to read this booklet carefully so that you will be familiar with the benefits available to you and your family and will understand your rights and responsibilities under the Plan. This booklet is not meant to be a substitute for the full text of the Plan document. If there are differences between this summary plan description and the Plan document, the Plan document will govern. The Trustees will continue to advise you of any changes in the rules and regulations of the Plan as we try to provide you a greater measure of retirement security. If you would like to have a copy of the Plan document, or if you have any questions about your benefits under the Plan, please call or write to the Fund Office. Sincerely, The Board of Trustees PACE Industry Union-Management Pension Fund 3320 Perimeter Hill Drive Nashville, TN pensions@uswbenefitfunds.com

3 TO ALL PIUMPF PARTICIPANTS: The information below describes the monthly benefit levels or accrual rates in effect on and after December 31, 2010 that have been negotiated on your behalf and based on your employer s contribution rate as reflected in the Standard Form of Participation Agreement accepted by the Fund as of April 11, 2011, for the contributing employer and local union indicated. Your pension credit is also used to determine your benefit under the Plan, as described in this SPD. Please note that certain requirements must be met in order to be eligible for the benefit level or accrual rate under the Program indicated below. These requirements are explained in this SPD. For further information, please contact the Fund Office. Local union number(s): Employer Number: Employer Name: Program: EFFECTIVE DATE BENEFIT LEVEL\ACCRUAL RATE

4 TABLE OF CONTENTS HIGHLIGHTS OF PENSION PLAN REGULAR PENSION EARLY RETIREMENT PENSION DEFERRED PENSION DISABILITY PENSION PRE-RETIREMENT SURVIVING SPOUSE S BENEFIT STANDARD FORM OF PAYMENT SECTION I. HOW DO I BECOME A PARTICIPANT IN THIS PLAN? WHEN DO I BECOME A PLAN PARTICIPANT? For Programs A, B, C, D, E & F For Program G Hours Entry Date SECTION II. HOW DO I EARN PENSION CREDIT? WHAT IS PENSION CREDIT? HOW IS FUTURE SERVICE CALCULATED? For Calendar Years Beginning on and After January 1, 2011: All Programs For Calendar Years Prior to January 1, 2011: Programs A, B, C, D, E & F For Calendar Years Prior to January 1, 2011: Program G HOW DO I QUALIFY FOR PAST SERVICE CREDIT? For Programs A, B, C, D, E & F For Program G HOW MUCH PAST SERVICE CREDIT WILL I GET? For Program A, B, C, D, E & F For Program G WHAT IS PAST SERVICE CREDIT USED FOR? For Programs A, B & C For Programs D, E & F For Program G DO I RECEIVE FUTURE SERVICE CREDIT FOR ANY NON-WORKING PERIODS? Military Service All Programs Disability Credit Programs A, B, C, D, E & F SECTION III. HOW DO I EARN VESTING SERVICE? WHAT IS VESTING SERVICE? For Programs A, B, C, D, E & F For Program G For All Programs IS IT POSSIBLE TO LOSE MY PENSION CREDIT AND VESTING SERVICE? For All Programs WHAT IS A ONE-YEAR BREAK IN SERVICE? For Programs A, B, C, D, E & F For Program G Parental Leave, Family and Medical Leave For All Programs WHAT IS A PERMANENT BREAK IN SERVICE? For Programs A, B, C, D, E & F For Program G DO I RECEIVE VESTING SERVICE FOR ANY NON-WORKING PERIODS? Military Service For All Programs i

5 SECTION IV. WHEN AM I ELIGIBLE FOR A PENSION? DO I NEED TO RETIRE TO RECEIVE BENEFITS? IS THERE A REQUIREMENT THAT I HAVE FUTURE SERVICE CREDIT IN ORDER TO BE ELIGIBLE FOR BENEFITS? For Programs A, B, C, D, E & F For Program G HOW DO I BECOME ELIGIBLE FOR A REGULAR PENSION? For All Programs HOW DO I BECOME ELIGIBLE FOR AN EARLY RETIREMENT PENSION? For Programs A, B, C, D, E & F For Program G WHAT IF I STOP WORKING BEFORE AGE 55? For Programs A, B, C, D, E & F For Program G HOW DO I BECOME ELIGIBLE FOR A DISABILITY PENSION? For Programs A, B & C For Programs D, E & F For Programs A, B, C, D, E & F For Program G For All Programs SECTION V. HOW MUCH WILL MY PENSION BE? HOW WILL MY BENEFIT BE CALCULATED? Pension Credit Earned Prior to January 1, 2011 For Programs A, B & C For Programs D, E & F For Program G Pension Credit Earned on and after January 1, 2011 For All Programs HOW MUCH WILL MY REGULAR PENSION BE? For Programs A, B & C For Programs D, E & F For Program G For All Programs HOW MUCH WILL MY EARLY RETIREMENT PENSION BE? For All Programs HOW MUCH WILL MY DEFERRED PENSION BE? For All Programs HOW MUCH WILL MY DISABILITY PENSION BE? For Programs A, B, C, D, E & F For Program G ARE THERE SPECIAL BENEFITS FOR FORMER PARTICIPANTS OF MERGED PLANS? SECTION VI. HOW IS MY PENSION PAID? WHAT ARE THE STANDARD FORMS OF PAYMENT? IF YOU ARE SINGLE LIFE ANNUITY For All Programs IF YOU ARE MARRIED HUSBAND AND WIFE PENSION For All Programs 50% Husband and Wife Pension For All Programs 75% and 100% Husband and Wife Pensions For All Programs Divorce and Domestic Relations Orders WILL MY BENEFIT INCREASE IF MY SPOUSE DIES? Pop-Up Benefit For Programs A, B, C, D, E & F OPTIONAL FORMS OF PAYMENT WHAT IS A JOINT AND SURVIVOR OPTION? For Programs A, B, C, D, E & F ARE MY SURVIVORS ENTITLED TO A BENEFIT IF I DIE BEFORE RETIREMENT? DEATH BENEFIT FOR MARRIED PARTICIPANTS FOR PROGRAMS A-F Death Benefit If You Are Employed on Date of Death ii

6 Death Benefit If You Die After Leaving Covered Employment But Before Starting Benefits DEATH BENEFITS FOR MARRIED PARTICIPANTS FOR PROGRAM G DEATH BENEFITS FOR SINGLE PARTICIPANTS For All Programs SECTION VII. MISCELLANEOUS WHAT IF I GET DIVORCED? WILL MY MILITARY SERVICE COUNT AS SERVICE UNDER THE PLAN? CAN I RECEIVE A LUMP SUM PAYMENT? HOW LONG CAN I DELAY RECEIPT OF MY BENEFITS? WHAT WILL HAPPEN TO MY BENEFIT IF I RETURN TO WORK AFTER MY BENEFIT PAYMENTS START OR IF I CONTINUE TO WORK AFTER AGE 65? WILL MY BENEFIT BE RECALCULATED IF I RETURN TO COVERED EMPLOYMENT? WHAT HAPPENS IF MY EMPLOYER WITHDRAWS FROM THE FUND? WHAT IF THE FUND TERMINATES? SECTION VIII. PENSION APPLICATION, DETERMINATIONS AND APPEALS CAN I GET ESTIMATES OF MY PENSION BENEFITS? HOW DO I APPLY FOR BENEFITS? HOW CAN MY BENEFICIARY FILE FOR A DEATH BENEFIT? HOW WILL I KNOW IF MY CLAIM FOR BENEFITS IS DENIED? WHAT ARE MY APPEAL RIGHTS IF MY CLAIM IS DENIED? SECTION IX. STATEMENT OF RIGHTS UNDER ERISA BENEFIT GUARANTY RIGHTS AND RESPONSIBILITIES SECTION X. OTHER IMPORTANT INFORMATION ABOUT YOUR PLAN PLAN SPONSOR AND ADMINISTRATOR Board of Trustees BOARD OF TRUSTEES AS AGENT FOR SERVICE OF PROCESS Labor Trustees: Employer Trustees: EMPLOYERS AND EMPLOYEE ORGANIZATIONS PLAN YEAR EMPLOYER IDENTIFICATION NUMBER AND PLAN NUMBER FINANCIAL INFORMATION FUNDING MEDIUM TYPE OF ADMINISTRATION MERGED PLANS iii

7 HIGHLIGHTS OF PENSION PLAN The PACE Industry Union-Management Pension Plan ( Plan ) provides several types of pensions and other benefits if you leave covered employment and the industry represented by the USW International Union, AFL-CIO ( Union ) after having earned a vested right to a pension. The specific eligibility requirements for the various benefits provided under the Plan and the amount of such benefits are determined by the benefit program in which your employer participates on your behalf. The Plan provides benefits through Programs A through G. The details of each of these Programs will be described in the pages that follow. Nothing in this summary is meant to interpret, extend or change in any way the provisions in the Plan. The Trustees reserve the right to amend, modify or discontinue all or part of this Plan whenever, in their judgment, conditions so warrant. This summary plan description reflects the terms of the Plan in effect on April 1, 2011, and generally applies to Participants who have service under the Plan on or after that date. If you retired or terminated covered employment before April 1, 2011, unless provided otherwise in this document or in the Plan, the Plan document in effect on the date of your termination of employment will define the benefits available to you. In general, the following benefits are available under the Plan: A Regular Pension pays your full retirement benefit if you retire at age 65 (or your 5 th anniversary of participation, if later) (see pages 10 and 15). An Early Retirement Pension is available if you retire between ages 55 and 65 with 10 years of service (5 years under Program G). Early Retirement benefits are adjusted based on the Participant s age at the time benefits commence (see pages 10 and 17). A Deferred Pension is available if you leave covered employment before retiring with at least 5 years of service. You must have at least 10 years of service (5 years under Program G) to start benefits on or after age 55, but before age 65. If you have at least 5 years of service, you may start your benefit at age 65. Benefits that commence prior to age 65 will be adjusted to reflect the Participant s age at the time benefits commence (see pages 11 and 17). A Disability Pension is available if you become totally and permanently disabled while working in covered employment. The Program in which you participate will determine the eligibility requirements and benefits provided (see pages 11 and 17). A Pre-Retirement Surviving Spouse s Benefit is payable to your spouse upon your death before retirement, if you have 5 years of pension credit or vesting service (see pages 21 and 22). Standard Form of Payment If you are married, you will receive your benefit in the form of a Husband and Wife Pension, which is a reduced benefit payable in the form of a monthly annuity for your life, with 50% of your monthly benefit payable to your surviving spouse for life (see page 19). If you are not married, your benefit will be paid in the form of a monthly annuity for your life. If you reject the standard form of payment, you may elect an optional form of benefit, such as a 75% or 100% Husband and Wife Pension, joint and survivor beneficiary options, and other options determined by the Program in which you participate (see pages 19, 20 and 21). SECTION I. HOW DO I BECOME A PARTICIPANT IN THIS PLAN? Benefits in this Plan are only paid to Plan participants, their spouses, or their designated beneficiaries. You are eligible to become a participant in this Plan if you are an employee covered by a collective bargaining agreement between your employer and the USW International Union, AFL-CIO or a local Union affiliate ( Union ), or another labor union that is accepted for participation in the Plan, and if the agreement requires your employer to contribute 1

8 to the Plan for the hours you work. You are also eligible to participate if your employer is the USW International Union, a local Union affiliate, or a benefit plan that has entered into an agreement with the Fund to make contributions on your behalf. In order to become a Plan participant, you must further satisfy the participation requirements described below. Hours of service for which your employer is obligated to contribute to the Fund is called covered employment. Your employer s obligation to make contributions on your behalf is reflected in a Standard Form of Participation Agreement that has been accepted by the Fund. WHEN DO I BECOME A PLAN PARTICIPANT? For Programs A, B, C, D, E & F You become a Plan participant if you work at least 1,000 hours in covered employment during your first year on the job, or in any calendar year that starts after you are hired, and you are at least 21 years old. For Program G You become a Plan participant if you work 150 hours in covered employment during your first year on the job, or in any calendar year that starts after you are hired. Hours Hours generally mean each hour for which you are paid, or are entitled to be paid by your employer. Hours may also include some unpaid periods such as military service while you have re-employment rights under law, or continuous work with the same employer even if part of that work is not in a job covered by the collective bargaining agreement that requires contributions to be made to the Fund. Entry Date You will be formally enrolled as a participant on the earliest January 1 or July 1 occurring after you meet the applicable Program requirements described above. Once you become a Participant, you will receive pension credit for any hours of service for which contributions were required to be made on your behalf. You may also receive pension credit, under the special rules described in this booklet, for some or all of your service with the employer before the employer started contributing to the Plan (see pages 4-6). Example: Your employer begins making contributions to the Fund on your behalf on your hire date, September 1, Your employer participates in Program A. You work 1,500 hours in covered employment between September 1, 2010 and August 31, Because you completed 1,000 hours during your first year of employment, and you are at least 21 years old, you will become a participant in the Plan on January 1, SECTION II. HOW DO I EARN PENSION CREDIT? The amount of time you work for an employer in the Plan counts in several important ways. First of all, it determines when you become a participant in the Plan, as explained in Section I. It also determines whether you are eligible for a pension and the amount of your pension, as explained in Sections II and III. WHAT IS PENSION CREDIT? Your years of pension credit determine the amount of your pension benefit, and also count in determining your eligibility for certain pensions. Work for which your employer is required to contribute to the Fund on your behalf is called covered employment. Pension credit for covered employment is called future service credit. You can also receive pension credit for work you performed before your employer started contributing to the Fund for you; this is called past service credit. When you retire, your total years of pension credit are calculated by adding together your past service credit and future service credit. 2

9 HOW IS FUTURE SERVICE CALCULATED? Future service credit is based on your hours of service in covered employment and generally includes all hours in covered employment for which you are paid by your employer. Hours may also be credited for certain non-working periods, as described at the end of this Section II. For Calendar Years Beginning on and After January 1, 2011: All Programs You will receive one full year of future service credit for each calendar year beginning on and after January 1, 2011 in which you have at least 2,040 hours for which contributions are due on your behalf. The following table shows how much credit you will receive in a calendar year beginning on and after January 1, 2011 if you work 2,040 hours or less for which contributions are due: Hours for which Contributions are Due in a Calendar Year Years of Pension Credit 2,040 or more 1 1,530 2,039 ¾ 1,020 1,529 ½ 510 1,019 ¼ Less than For Calendar Years Prior to January 1, 2011: Programs A, B, C, D, E & F For calendar years prior to January 1, 2011, you will receive one full year of future service credit for each calendar year in which you have at least 1,760 hours for which contributions are due on your behalf. The following table shows how much credit you will receive in a calendar year prior to January 1, 2011 if you work 1,760 hours or less for which contributions are due: Hours for which Contributions are Due in a Calendar Year Years of Pension Credit 1,760 or more 1 1,320 1,759 ¾ 880 1,319 ½ ¼ Less than

10 For Calendar Years Prior to January 1, 2011: Program G For calendar years prior to January 1, 2011, you will receive one full year of future service credit for each calendar year in which you have at least 1,800 hours for which contributions are due on your behalf. The following table shows how much credit you will receive in a calendar year prior to January 1, 2011 if you work 1,800 hours or less for which contributions are due: Hours for which Contributions are Due in a Calendar Year Tenths of Pension Credit for Calendar Year more 10 HOW DO I QUALIFY FOR PAST SERVICE CREDIT? The Program you participate in will determine your eligibility for past service credit. For Programs A, B, C, D, E & F In order to qualify for past service credit: (i) (ii) if you began working in covered employment on or before August 17, 1982, you must have 5 or more years of future service credit (unless you qualify for the 1,200-Hour Exception described below); or if you began working in covered employment after August 17, 1982, you must be an employee for whom contributions were required to be made to the Fund on the first day your employer started contributing to the Fund, and you must have 5 or more years of future service credit (unless you qualify for the 1,200-Hour Exception described below). How Do I Satisfy the 1,200-Hour Exception from the 5-Year Future Service Requirement for Past Service Credit? You may qualify for past service credit without meeting the 5-year future service requirement described above if you meet all of the following requirements: (i) you are in covered employment in Programs A, B or C on or after February 28, 1980, (ii) you are an employee for whom contributions were required to be made to the Fund on the first day your employer starts contributing to the Fund, and (iii) you work at least 1,200 hours in the 12-month period ending on the first day your employer starts contributing to the Fund on your behalf. The same exception applies if you are in covered employment in Programs D, E or F on or after January 1, 1999, for vesting purposes only, and you satisfy (ii) and (iii) above. The following hours will count towards the 1,200-Hour Test: 4

11 Hours in any job classification that is covered for pension purposes by a collective bargaining agreement as of the first day your employer starts contributing to the Fund; or Hours in a job classification and at a plant location that is covered under a collective bargaining agreement between your employer and the Union before your employer starts contributing to the Fund; or Hours for layoff or disability as described above must be proven to the satisfaction of the Trustees based on the following forms of proof: (1) records of governmental, unemployment or disability plans; (2) employer s certified records; or (3) medical documentation. If you cannot satisfy the requirements of the 1,200-Hour Exception described above, you may still qualify for past service credit if you were working in covered employment on February 28, 1980, and you met the requirements for past service credit under the Plan rules in effect on February 27, 1980, or if you were working in non-covered employment on February 27, 1980 with an employer that had a collective bargaining agreement in effect on that date requiring contributions to the Fund and complete two quarters of future service credit thereafter. For Program G In order to receive past service credit, you must meet one of the following requirements: Have at least 5 years future service credit, or Satisfy the Three-Year Test. How Do I Satisfy the Three-Year Test? The Three-Year Test requires you to have worked at least 150 days during each of the three calendar years immediately before the year in which your employer was first required to make contributions to this Fund or to the OCAW/PACE Union-Industry Pension Fund (or for as many years as you were employed, if fewer). These days of work must have been in a job classification and at a job location that was, either for part or all of the three-year period, covered by a collective bargaining agreement with the Union or the OCAW Union (including a Local). If you worked 150 days in two of the three years but were unable to do so in the third year because of a disability, you will be deemed to meet the Three-Year Test. The same is true if you were engaged in active military service during all or any part of the three years. These exceptions are granted, at the discretion of the Trustees, based on proof that you provide. The Three-Year Test does not apply if you have at least 15 years of past service credit and 4 years of future service credit and become unable to earn more future service credit due to a total and permanent disability. HOW MUCH PAST SERVICE CREDIT WILL I GET? For Program A, B, C, D, E & F You will receive one year of past service credit for each calendar year in which you worked at least 1,200 hours in creditable employment. For this purpose, creditable employment is work in the industry covered by the Plan prior to the start of your covered employment in job classifications and at plant locations that is: covered for pension purposes by a collective bargaining agreement as of the first day your employer starts contributing to the Fund; or covered by a collective bargaining agreement with the Union before the date your employer starts contributing to the Fund; or 5

12 determined by the Trustees to be similar to work in those job classifications and plant locations within the industry represented by the Union, if the participant applies for such past service credit. Also, you may receive a partial year of past service credit for the calendar year in which your covered employment or creditable employment starts, at a rate of one-quarter year of credit for each 300 hours of creditable employment. You will not receive past service credit for any period before a period of three consecutive calendar years in which you had fewer than 1,200 hours of creditable employment in at least one of the three years. Although your past service credit will be determined on the date you start covered employment, it will not be credited until you have met the eligibility requirements for past service credit described above and you have at least 2 quarters of future service credit. (If you retire within 2 years of the employer s first contribution date, you must have at least 880 hours for which contributions were made to the Fund on your behalf over two consecutive calendar years.) For employees of employers that begin participating in the Fund on or after January 1, 2006, past service credit is limited to time worked at the facility for which the employer makes contributions to the Fund. Furthermore, past service credit will only be considered if it was specifically reported to the Fund by your employer at the time the employer first started making contributions to the Fund. For Program G One year of past service credit will be granted for each calendar year before your employer started contributing to the Fund in which you worked at least 150 days, if your employment was in a job classification and place of business covered by a collective bargaining agreement between the Union or the OCAW Union (including a Local) and an employer, and that employer later became a contributing employer to the Fund. However, if at the time your employer enters the Plan, the actuary determines that past service credit must be limited, your past service credit may be limited. If your employment was before the first collective bargaining agreement between your employer and the Union, your job classification must be included in the covered units in the first such collective bargaining agreement. Certain military service during periods of war or national emergency also may be granted past service credit, provided you return to covered employment within 90 days of discharge. However, past service credit will not be granted for periods of work before a break in service (see pages 8 and 9). You will not receive past service credit for any period before a period of 5 consecutive calendar years in which you work fewer than a total of 150 days. A period of employment for the Union or the OCAW Union will not be counted for purposes of determining an absence for a 5 consecutive-year period. For employees of employers that begin participating in the Fund on or after January 1, 2006, past service credit is limited to time worked at the facility for which the employer makes contributions to the Fund, subject to limitations as determined by the actuary as described above. Furthermore, past service credit will only be considered if it was specifically reported to the Fund by your employer at the time the employer first started making contributions to the Fund. WHAT IS PAST SERVICE CREDIT USED FOR? For Programs A, B & C Past service credit is available for purposes of calculating vesting, pension credit and pension eligibility. For Programs D, E & F Past service credit is available for purposes of calculating vesting and pension eligibility (but not pension credit). For Program G Past service credit is available for purposes of calculating pension credit and pension eligibility (but not vesting). 6

13 DO I RECEIVE FUTURE SERVICE CREDIT FOR ANY NON-WORKING PERIODS? Military Service All Programs You will receive future service credit for periods of military service in the U.S. Armed Forces to the extent required by federal law. For more information, please refer to Will My Military Service Count as Service Under the Plan in Section VII. Disability Credit Programs A, B, C, D, E & F You may receive future service credit of up to one year for each period of disability that immediately follows covered employment and that occurs prior to January 1, Such service counts for purposes of pension eligibility and pension credit in determining your benefit amount, but is not considered in determining the benefit level that applies in calculating your benefit amount. In order to qualify for such credit for periods of disability that occur prior to January 1, 2011, you must file a claim in writing to the Trustees not later than 12 months after the period of disability. The Trustees may approve your claim, at their discretion, based on the following proof: (i) a doctor s statement verifying your disability and containing the diagnosis, treatment and dates of disability, (ii) evidence that you are receiving state disability benefits, or (iii) evidence that you are receiving weekly accident and sickness benefits provided by an employersponsored disability plan. For periods of disability that occur prior to January 1, 2003, claims can be submitted later than 12 months after the period of disability. Your claim may be approved based on the proof described in the paragraph above or, if the proof described above is unavailable, written verification by your contributing employer that you were unable to work because of an accident or sickness and that you were under the regular care of a doctor. You will not receive pension credit for periods of disability that occur on and after January 1, 2011 unless employer contributions are due to the Fund on your behalf for such periods. WHAT IS VESTING SERVICE? SECTION III. HOW DO I EARN VESTING SERVICE? Your years of vesting service will determine your eligibility for the types of pensions available under the Plan. Generally, you must have 5 years of vesting service to be eligible for any benefit under the Plan. You are then considered to be vested in your benefit. This means you will not lose your pension benefit even if you no longer work in covered employment. For Programs A, B, C, D, E & F You will receive one year of vesting service for each calendar year in which you work at least 1,000 hours in covered employment. This includes the period you worked in covered employment before you met the eligibility requirements for participation in the Plan. You will receive one year of vesting service for each year of past service pension credit earned in calendar years before the year your covered employment started. Also, hours of non-covered work before your employer joined the Plan will count if such work is continuous with covered employment with the same employer at the same place of business as your covered employment. For Program G Beginning January 1, 2011, you will receive one year of vesting service for each calendar year in which you work at least 1,000 hours in covered employment. This includes the period you worked in covered employment before you met the eligibility requirements for participation in the Plan. You will not receive partial years of vesting service. 7

14 For calendar years prior to January 1, 2011, you will receive one year of vesting service for each calendar year in which you worked at least 750 hours in covered employment. In addition, if you work one hour in covered employment on or after January 1, 1994, and complete less than 750 hours of work in a calendar year, you will receive vesting service based on the following schedule: Hours of Work for which Contributions are Due in a Calendar Year Tenths of Vesting Service for Calendar Year or more 10 For All Programs In determining your vesting service, the Plan will count hours you work for a contributing employer in a job not covered by this Plan if the work immediately precedes or follows your covered employment with that contributing employer. However, you will not receive vesting credit for service before a permanent break in service (see page 8), or for certain service before 1976 (contact the Fund Office for more information). IS IT POSSIBLE TO LOSE MY PENSION CREDIT AND VESTING SERVICE? For All Programs If you have a permanent break in service before you have enough years of pension credit or vesting service to be vested in a benefit, you will lose all the pension credit and years of vesting service you earned before the break. In addition, your participation in the Plan will end. A permanent break in service occurs after a specified number of one-year breaks in service, as described below. You cannot lose your right to a pension once you become vested. WHAT IS A ONE-YEAR BREAK IN SERVICE? For Programs A, B, C, D, E & F In any calendar year after 1975, you will have a one-year break in future service if you are credited with fewer than 440 hours of service in a calendar year. Hours of service include work in non-covered employment that immediately precedes or follows work in covered employment with the same contributing employer. 8

15 For Program G Before January 1, 1994, you will have a one-year break in service if you fail to work 375 hours in covered employment in any calendar year. After January 1, 1994, you will have a one-year break in any calendar year in which you fail to work 150 hours in covered employment. For this purpose, after 1975, service includes noncovered employment that precedes or follows covered employment with the same employer. Parental Leave, Family and Medical Leave For All Programs If you are absent from covered employment after 1984 because of your pregnancy, the birth of your child, the adoption of your child, or the care of your child immediately after your child s birth or adoption, you will be credited with hours of service for the purpose of avoiding a one-year break in service to the extent required by law. You will also be credited with hours of service for this purpose for any period of family or medical leave, as provided under the Family and Medical Leave Act. You must provide the Fund with proof of the reasons for your absence and the time periods involved. WHAT IS A PERMANENT BREAK IN SERVICE? For Programs A, B, C, D, E & F From 1989 forward - If you work an hour of service in covered employment on or after January 1, 1989, you will incur a permanent break in service only if you leave covered employment with less than 5 years of vesting service or pension credit, and you subsequently incur 5 consecutive one-year breaks in service. Once you become vested in your pension, a break in service will not cancel previously earned pension credit or vesting service. From If you left covered employment between January 1, 1976 and December 31, 1986, and before you had 10 years of pension credit or vesting service, you will have a permanent break in service when your consecutive one-year breaks in service, including at least one year after 1975, equal or exceed your years of vesting service or pension credit before the first one-year break. If you left covered employment during or after 1987, this rule is modified so that you will not incur a permanent break in service until you have incurred at least 5 consecutive one year breaks in service. Before 1976 If you left covered employment before January 1, 1976, and before you had 10 years of pension credit or vesting service, you will have a permanent break in service if you did not earn four quarters of future service credit within any period of 4 consecutive calendar years. Exception The following exception applies to the break in service rules: If you were unable to work because of a total disability, as determined by the Trustees, you are allowed a grace period of up to one full calendar year in determining whether or not you had a permanent break. However, you must give written notice to the Trustees of your request for this grace period within 12 months after the period for which the grace period is requested. For Program G From 1990 forward If you have an hour of service in covered employment on or after January 1, 1990 (January 1, 1989 for non-bargaining unit employees), you will incur a permanent break in service only if you leave covered employment with less than 5 years of vesting service or pension credit, and you subsequently incur 5 consecutive one-year breaks in service. Once you become vested in your pension, a break in service will not cancel previously earned years of pension credit or vesting service. From If you began covered employment on or after May 1, 1976 (or you had 7 or more years of vesting service as of May 1, 1976), and you left covered employment before January 1, 1990 (January 1, 1989 for non-bargaining unit employees) with fewer than 10 years of vesting service, you have a permanent break in service when your consecutive one-year breaks in service (including at least one year after 1975) equal or exceed your years 9

16 of vesting service before the first one-year break. If you left covered employment after August 22, 1984, this rule is modified so that you will not incur a permanent break in service until you have at least 5 consecutive one-year breaks in service. If you began covered employment before May 1, 1976 (or had fewer than 7 years of vesting service on such date), the Fund Office will provide you with information about the applicable break in service provisions. DO I RECEIVE VESTING SERVICE FOR ANY NON-WORKING PERIODS? Military Service For All Programs You will receive vesting service for periods of military service in the U.S. Armed Forces to the extent required by federal law (see page 23). SECTION IV. WHEN AM I ELIGIBLE FOR A PENSION? DO I NEED TO RETIRE TO RECEIVE BENEFITS? Under all Programs, to receive a pension you must retire prior to the date your pension benefits commence. For purposes of this Plan, retire means that you have ceased being employed for at least 30 consecutive days by any contributing employer or an employer in the same business, trade or craft in which you were employed at any time under the Plan. Once you meet this requirement, you are considered retired as of the first day you cease such employment. IS THERE A REQUIREMENT THAT I HAVE FUTURE SERVICE CREDIT IN ORDER TO BE ELIGIBLE FOR BENEFITS? For Programs A, B, C, D, E & F In order to qualify for a pension, in addition to the other eligibility requirements described in this Section, you must earn at least two quarters of future service pension credit. If the effective date of your retirement is within two years of the first day your employer starts contributing to the Fund, you must complete at least 880 hours for which contributions are made during two consecutive calendar years. For Program G In order to qualify for a pension, in addition to the other eligibility requirements described in this Section, you must have one year of future service credit. HOW DO I BECOME ELIGIBLE FOR A REGULAR PENSION? For All Programs You are eligible to retire on a Regular Pension (a full retirement benefit) if you are at least age 65 or, if you have not participated in the Plan for at least 5 years at age 65, your fifth anniversary of Plan participation. This eligibility date is referred to as your normal retirement age. Age 70 ½ For All Programs Even if you continue working, the Fund will begin paying you your monthly benefit no later than April 1 of the calendar year following the calendar year in which you reach age 70 ½. HOW DO I BECOME ELIGIBLE FOR AN EARLY RETIREMENT PENSION? For Programs A, B, C, D, E & F You are eligible to retire on an Early Retirement Pension if you are at least age 55, but under age 65, and you have at least 10 years of pension or vesting credit. The amount of your Regular Pension will be reduced for an early commencement date (see page 17). 10

17 For Program G You are eligible to retire on an Early Retirement Pension if you are at least age 55, but under age 65, and you have at least 5 years of pension. The amount of your Regular Pension will be reduced for an early commencement date (see page 17). WHAT IF I STOP WORKING BEFORE AGE 55? For Programs A, B, C, D, E & F You are entitled to a Deferred Pension if you have 5 years of vesting service or pension credit and you stop working in covered employment before you retire. If you have at least 10 years of pension credit or vesting service, you can start receiving a Deferred Pension if you retire at any time after age 55. Your pension will be calculated in the same manner as an Early Retirement Pension (see page 17). If you have fewer than 10 years of pension credit or vesting service when you stop working in covered employment, you must wait to start your Deferred Pension until age 65. At that time, you will receive your full retirement benefit, in the same amount as a Regular Pension. For Program G Example: Bob is age 46 and has 7 years of vesting service when he terminates covered employment. Because he has at least 5 years of vesting service, but fewer than 10 years of pension credit or vesting service, he is entitled to retire on a Deferred Pension at age 65. At age 65, his benefit will be unreduced for early retirement. Example: Don stops working in covered employment at age 48 with 10 years of pension credit. Because Don has at least 10 years of pension credit, he may retire on a Deferred Pension at any time after reaching age 55; if he retires before age 65, his pension will be reduced in the same manner as an Early Retirement Pension. You are eligible for a Deferred Pension, payable at age 55 or later, if you have 5 years of vesting service and you stop working in covered employment prior to your retirement. The amount of the Deferred Pension benefit depends on when you begin to receive it. If you wait until age 65 to begin receiving your benefit, the monthly amount of the Deferred Pension is calculated in the same manner as a Regular Pension. If the Deferred Pension begins at age 55 or later, but before age 65, the monthly amount is the same as the Early Retirement Pension. HOW DO I BECOME ELIGIBLE FOR A DISABILITY PENSION? For Programs A, B & C You can receive a Disability Pension if you become totally and permanently disabled while working in covered employment and you have at least 10 years of pension credit including at least two quarters of future service credit at the time your disability starts. For Programs D, E & F You can receive a Disability Pension if you become totally and permanently disabled while working in covered employment and you have at least 5 years of vesting credit including at least two quarters of future service credit at the time your disability starts. For Programs A, B, C, D, E & F To receive a Disability Pension, you must submit to the Trustees a disability award issued by the Social Security Administration, indicating that you became totally and permanently disabled while working in covered employment. Your Disability Pension will ordinarily start on the first day of the month after 5 months of the onset of your disability, as determined by the Social Security Administration, provided you file your benefit application during that period. If you file later, your Disability Pension will ordinarily start on the first day of the month after you file your application. In all cases, however, benefits will not start until your application 11

18 has been approved. If, due to the processing of your application, there is a lapse of time between your application date and your benefits start date, in no event will payments be retroactive for more than one year. Both before and after you retire on a Disability Pension, the Trustees may require that you submit to a medical examination as often as may be reasonably required. If you recover from total and permanent disability before normal retirement age, your Disability Pension will be discontinued, effective as of the date of recovery. If your Disability Pension is discontinued, you may apply for a Deferred, Early Retirement or Regular Pension once you are eligible. For Program G You are eligible for a Disability Pension with a starting date after October 1, 2001, if you meet these four requirements: you become totally and permanently disabled before age 65, as determined by the Social Security Administration you have at least 10 years of pension credit, you have at least one year of future service credit, and you worked in covered employment for at least 375 hours within 24 months of the time you became totally and permanently disabled. To receive a Disability Pension, you must submit to the Trustees a disability award issued by the Social Security Administration. Your Disability Pension will generally start on the first day of the month that is 6 full months after the onset of your disability, as determined by the Social Security Administration, if you apply for a Disability Pension during that period. If you file later, your Disability Pension will ordinarily start on the first day of the month after you file your benefit application. In all cases, however, benefits will not start until your application has been approved. Both before and after you retire on a Disability Pension, the Trustees may require that you submit to a medical examination as often as may be reasonably required. If you have earnings from any employment, you must report them to the Trustees within 15 days after the end of the month for such earnings; if you do not report earnings as required, you will be disqualified from benefits for 6 months for each violation. If you recover from total and permanent disability before normal retirement age, your Disability Pension will be discontinued, effective as of the date of recovery. If your Disability Pension is discontinued, you may apply for a Deferred, Early Retirement or Regular Pension once you are eligible. For All Programs If you have applied for a Disability Pension and you are also eligible for an Early Retirement Pension, you may apply to receive your benefits as an Early Retirement Pension while a determination is being made on your application for a Disability Pension. If you are then granted a Disability Pension, you will start receiving the Disability Pension amount in lieu of the Early Retirement Pension amount retroactive to the date you were eligible to begin your Disability Pension. Effective for quarters beginning on and after April 1, 2005, and solely for purposes of determining your eligibility to receive a Disability Pension, you will earn a quarter year of future service credit for each quarter year you worked in covered employment for more than half of the quarter. In addition, you will be credited with up to one year of vesting service for the period ending on the date you cease working in covered employment. HOW WILL MY BENEFIT BE CALCULATED? SECTION V. HOW MUCH WILL MY PENSION BE? Below is a general description of how benefits are calculated. This is followed by specific examples of how to calculate benefits under each type of Pension available under the Plan. 12

19 Your total monthly pension benefit will be the sum of your monthly pension benefit for the period before January 1, 2011 and the period on and after January 1, Pension Credit Earned Prior to January 1, 2011 For Programs A, B & C (Benefit Level x Years of Pension Credit) The portion of your monthly pension benefit for pension credits earned prior to January 1, 2011 is equal to your years of pension credit earned before January 1, 2011, multiplied by the monthly benefit level applicable to you on the last day prior to January 1, 2011, for which your employer was obligated to make contributions on your behalf, determined as of December 31, Your applicable monthly benefit level is based on the contribution rate of your employer. Your benefit level, effective for pension credit earned prior to January 1, 2011 (assuming you satisfy the conditions described below), appears in the front of this booklet. If you terminated covered employment prior to January 1, 2011, you will be eligible for an increase in your benefit level that took effect before or after you terminate covered employment if, as of December 31, 2010, you have been credited with: (i) at least one hour of service during the 90-day period immediately preceding the change in benefit level, and (ii) at least 440 hours of service during the 90-day period immediately preceding the 90-day period described in (i). If you do not satisfy (i) and (ii), you will be eligible for a change in benefit level if, as of December 31, 2010, you are credited with at least 2 quarters of future service credit under the new benefit level or at least 880 hours for which contributions are required to be made to the Fund at that benefit level over two consecutive calendar years. If you satisfy (i) but do not satisfy (ii), you will be deemed to satisfy (ii) if, as of December 31, 2010, (a) the 90-day period described in (ii) includes any month in the calendar year immediately preceding the calendar year in which the benefit level change is effective, and (b) you receive a full year of future service credit in the calendar year immediately preceding the calendar year in which the benefit level change is effective. This rule applies to all Pensions under the Plan. If, for the period prior to January 1, 2011, you have been covered under more than one benefit level and do not meet the requirements described above, your monthly pension benefit for pension credits earned prior to January 1, 2011 will be based on the benefit level under which you satisfied the requirements described above. Example: Jason terminated covered employment on March 31, His employer s benefit level increased from $18.00 to $20.32 on May 1, Jason completed 200 hours of service in the months of February and March Jason completed 480 hours of service in the months November and December 2009 and January Because Jason had at least one hour of service within 90 days of the benefit level increase on May 1, 2010 (generally the period between February and April 2010), and had completed at least 440 hours of service in the preceding 90-day period (generally the period between November 2009 and January 2010), he was entitled to the benefit level increase. Example: Mark worked in covered employment. His employer s benefit level increased from $40 to $44 on September 1, Mark was credited with 80 hours of service from June through August 31, 2008, and with 350 hours of service from March through May Mark had no hours of service after September 1, Although Mark had at least one hour of service in the 90-day period (generally June through August 31, 2008) immediately preceding the benefit level increase on September 1, 2008, Mark was not entitled to the $44 benefit level increase because he did not complete 440 hours of service during the previous 90-day period (generally March through May 2008) before the 90-day period immediately preceding September 1, He also did not earn at least two quarters of future service credit under the new benefit level (on and after September 1, 2008). Mark s benefit will be determined based on the $40 benefit level. 13